GLOSTREXT BERHAD

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***Important***Blogger is not wrote any recommendation & suggestion. All is personal
opinion and reader should take their own risk in investment decision.

Open to apply: 27 July 2023
Close to apply: 02 Aug 2023
Balloting: 4 Aug 2023
Listing date: 15 Aug 2023

Share Capital
Market cap: RM77.33779 mil
Total Shares: 407.041 mil shares

Industry CARG
The geotechnical instrumentation and testing industry size (Singapore), 2017 – 2021: 5.76%
The geotechnical instrumentation and testing industry size (Malaysia), 2017 – 2021: -ve%
Industry competitors comparison (PAT%)
Glostrext Group: 19.04% (FYE2023) 
Ryobi Geotechnique International Pte Ltd: 20.01%
Element Geotechnical Testing (S) Pte Ltd: 24.77%
Aps Asia Pda Enterprise Pte Ltd: 19.04%
Others: -4.67% to 17.9%

Business (FYE 2023) 
Geotechnical instrumentation service provider. 
- customer type: Piling companies & construction companies. 
1. Pile instrumentation and static load test: 80.9%
2. Structural and ground instrumentation and monitoring services: 17.23%
3. Others: 1.87%
Revenue by Geo (FYE2023)
1. Singapore: 64.33%
2. Malaysia: 35.01%
3. Cambodia: 0.66%

Fundamental
1.Market: Ace Market
2.Price: RM0.19
3.Forecast P/E: 22.35 @ EPS0.0085 (adjusted EPS) 
4.ROE(Pro Forma II): 9.8% 
5.ROE: 11.68%(FYE2023), 24.36%(FYE2022), 9.45%(FYE2021), 18.64%(FYE2020)
6.Net asset: RM0.13
7.Total debt to current asset IPO: 0.227 (Debt: 7.866mil, Non-Current Asset: 25.233mil, Current asset: 34.654mil)
8.Dividend policy: no formal dividend policy.
9. Shariah status: -

Past Financial Performance (Revenue, Earning Per shares, PAT%)
2023 (FYE 31Mar): RM21.616 mil (Eps: 0.0101),PAT: 19.04% 
2022 (FYE 31Mar): RM26.574 mil (Eps: 0.0166),PAT: 27.61%
2021 (FYE 31Mar): RM16.966 mil (Eps: 0.0055),PAT: 14.12%
2020 (FYE 31Mar): RM23.963 mil (Eps: 0.0100),PAT: 18.47%

Order Book/Contract
Currently have: RM8.935mil

Operating cashflow vs PBT
2023: 15.41%
2022: 114%
2021: 113%
2020: 98.68%

Major customer (FYE 2023)
1. Asia Piling Co Pte Ltd: 13.83%
2. TPW Engineering Pte Ltd: 11.11%
3. CS Bored Pile System Pte Ltd: 8.79%
4. Econpile (M) Sdn Bhd: 7.11%
5. Aneka Jaringan Sdn Bhd: 4.89%
***total 45.73%

Major Sharesholders
Ir Dr Lee Sieng Kai: 45.63% (direct)
Tan Ah Huat: 18.41% (direct)

Directors & Key Management Remuneration for FYE2023
(from Revenue & other income 2023)
Total director remuneration: RM1.127mil

key management remuneration: RM1.40 mil – RM1.550 mil
total (max): RM2.677 mil or 23.91%

Use of funds 
1. Business expansion and working capital: 58.23%
2. Research and development: 8.95%
3. Repayment of bank borrowings: 16.41%
4. Estimated listing expenses: 16.41%

Conclusions (Blogger is not wrote any recommendation & suggestion. All is personal opinion and reader should take their own risk in investment decision)
Overall is still low grow industry. 

*Valuation is only personal opinion & view. Perception & forecast will change if any new quarter result release. Reader take their own risk & should do own homework to follow up every quarter result to adjust forecast of fundamental value of the company.